Tacoma office-to-apartments conversion site could be headed for sheriff’s sale
AI-generated summary reviewed by our newsroom.
- Pierce County court ordered foreclosure; lender set to collect on properties.
- 111X Pacific LLC bought downtown properties in 2021 and later defaulted on a loan.
- Sheriff’s sale ordered with no date set; lender may still pursue loan guarantors.
Another planned downtown Tacoma development appears headed for the auction block.
The 16-story project known as Tacoma Tower, 1119 Pacific Ave., is at the center of a debt collection case involving the project lender and the property owner-LLC and various partners.
The case is tied to a $9.94 million loan from December 2021, which was modified two times before default.
The News Tribune first reported on the Tacoma Tower loan default case and other lawsuits against the LLC owner in September of this year.
A stipulated judgment and decree of foreclosure was granted Oct. 31 by Pierce County Superior Court Judge Grant Blinn. The terms involve 1119 and neighboring 1123 Pacific Ave., along with 1114 Pacific Ave., a parking garage across the street, all owned since late 2021 by 111X Pacific LLC.
The lender, KHRE SMA Funding LLC, affiliated with Knighthead Funding of Connecticut, was awarded more than $14.27 million against the properties.
KHRE was also awarded judgment of nearly $1.8 million against 111X Pacific LLC.
A sheriff’s sale was ordered for the 111X Pacific property, with the proceeds to be applied “to the payment of the judgment granted … in order to satisfy the Deed of Trust.”
The judgment noted that “all redemption rights of 111X and guarantors … are waived.”
Unless waived, state law allows for borrowers to reclaim property within a certain time frame after it has been foreclosed by paying what was owed, plus any additional costs.
The order also does not preclude the lender from pursuing judgment against the loan guarantors, it added.
The judgment noted that the case would be taken off the trial calendar, but will remain open “pending further order of the court.”
A sale date has not been set.
111X Pacific LLC’s past plans and other litigation updates
State corporate filings show the property’s owner LLC is led by Rob Brewster of InterUrban Development. Brewster is among the defendants in the Tacoma Tower loan default case.
InterUrban on its website has described itself as focused on “historic preservation, adaptive reuse, and ground up construction projects in urban settings.”
It notes that the company develops “projects for its own portfolio, on behalf of other landowners, and as an advisory service — including historic tax credits, property acquisition and development, and other complex deal structures.”
In 2021 InterUrban’s plans to redevelop the former National Realty Building/Key Tower were made public. 111X Pacific LLC purchased the property for $6.5 million in November of that year. The next month, 111X Pacific LLC purchased the neighboring 1123 Pacific Ave. and a parking garage across the street at 1114 Pacific Ave. for a combined $8.8 million.
Todd Dvorak, responding to questions for InterUrban, told The News Tribune via email at that time that “InterUrban is working on a plan to renovate the building to accommodate a mix of office, residential and retail. More details will be coming sometime in 2022.”
In 2022, the Tacoma Tower project received an 8-year multifamily property tax exemption from the city for its plan to convert the office building into 63 market-rate units and office space, as well as ground-floor retail.
In November 2024, InterUrban entered into a general receivership in King County Superior Court.
“InterUrban was voluntarily placed into receivership because of the significant fees it is owed on other projects — Tacoma not being one of those,” Brewster told The News Tribune in September.
Eric Stokes, a marketing representative for the firm, told The News Tribune in September 2025 via email that InterUrban had “no ownership in the property — nor has it ever.”
Last year, 111X Pacific LLC was ordered to pay a default judgment of more than $106,000 as well as nearly $130,000 for a previously unpaid settlement in a case filed by a former local office tenant at the Tacoma Tower site.
In September of this year, a local architecture firm received a default judgment against 111X Pacific LLC, Brewster and Steve DeWalt (also of InterUrban), totaling more than $106,000 for unpaid work.
Also that same month, a new case was filed in Pierce County Superior Court against 111X Pacific by an Arizona investor, who contends he loaned the LLC $220,000 in July 2023 in exchange for an unsecured promissory note which had a two-year term, coming due in July of this year.
According to the complaint, “Defendant has failed to pay any principal or interest due under the note.”
No response has been filed in the case, and no attorney is listed representing 111X Pacific.
The foreclosure action is the latest project to take a hit in which InterUrban was involved. The abandoned Gordon’s Fireplace building in Portland, Oregon, which Brewster and InterUrban had been tied to since 2017 for redevelopment, was auctioned last month.
The site had made headlines in Oregon as a prominent eyesore visible from Interstate 84 just east of downtown Portland.
KGW-TV of Portland reported that the new owners of that building plan to “facilitate its sale to the nonprofit Do Good Multnomah” to renovate for affordable housing for homeless veterans.
Previous reporting from The News Tribune contributed to this report.
This story was originally published November 10, 2025 at 5:45 AM.
